The risk that the core services or method of delivering them may prevent, hinder or disrupt the private party's ability to provide the contracted services is comparatively remote. Also unlikely is the risk that there may be unanticipated changes to the frequency and/or type of core services that will have cost implications for the private party in providing the contracted services. Where such risks exist, however optimal risk allocation principles require that they both be undertaken by government.
Acts of government with this potential may be identified in the contract as intervening events under an intervening event, and depending on the circumstances, government may remain liable for all or part of the service charge, and the private party's obligation to provide the services may be suspended. If the intervening event increases the service costs to the private party, these costs should be able to be passed through to government.
For further information on intervening events refer to the contract development and management supporting document.